What type of contract is a lease

A tenant looking for a long-term lease may be scared away by the flexibility of a month-to-month lease, which may leave them subject to frequent rent raises or indeterminate rental periods. For landlords, the costs of more frequent tenant turnover should also be kept in mind, including advertising, screening, and cleaning costs. Additionally, if your rental is located in an area with lower occupancy rates, you may have trouble keeping your unit rented for long periods of time.

A rental agreement may be a good option for landlords that are focused on flexibility, particularly in areas that see quick tenant turnover, such as college towns. Whether you choose to offer a lease agreement or rental agreement, it is vitally important that you know who your tenant is.

With TransUnion SmartMove , you can increase your chances of identifying financially and personally responsible tenants. Landlords receive a rental credit report , a criminal report , eviction report , Income Insights report, and a ResidentScore to help them make a well-informed leasing decision — long or short term. She focuses on topics that empower independent landlords through data, insights, and industry best practices that are typically reserved only for large property management companies.

She is also involved in marketing and social media efforts centered on communicating the importance of tenant screening to independent landlords. What is a Lease Agreement? What is a Rental Agreement? Typical Items in Leases and Rental Agreements Both lease and rental agreements may vary in terms of structure and flexibility.

In almost all cases, you should consult a lawyer to ensure that you have a legally binding lease. The lease contract should contain, at a minimum, five essential components:. In some states, to be enforceable, a lease that has a term longer than one year must be in writing.

Actively scan device characteristics for identification. Use precise geolocation data. Select personalised content. Create a personalised content profile. Measure ad performance. Select basic ads. Create a personalised ads profile. Select personalised ads. Apply market research to generate audience insights. Measure content performance. Develop and improve products. List of Partners vendors.

A lease is a contract outlining the terms under which one party agrees to rent an asset—in this case, property—owned by another party. It guarantees the lessee , also known as the tenant, use of the property and guarantees the lessor —the property owner or landlord—regular payments for a specified period in exchange. Both the lessee and the lessor face consequences if they fail to uphold the terms of the contract.

A lease is a form of incorporeal right. Leases are legal and binding contracts that set forth the terms of rental agreements in real estate and real and personal property. These contracts stipulate the duties of each party to effect and maintain the agreement and are enforceable by each. For example, a residential property lease includes the address of the property, landlord responsibilities, and tenant responsibilities, such as the rent amount, a required security deposit , rent due date, consequences for breach of contract, the duration of the lease, pet policies, and any other essential information.

Not all leases are designed the same, but all have some common features: rent amount, the due date of rent, the expiration date of the lease. The landlord requires the tenant to sign the lease, thereby agreeing to its terms before occupying the property. Most residential leases are pretty standard, with the same terms for all tenants. Leases for commercial properties, on the other hand, are usually negotiated in accordance with the specific lessee and typically run from one to 10 years, with larger tenants often having longer, complex lease agreements.

The landlord and tenant should retain a copy of the lease for their records. This is especially helpful if and when disputes arise. Tenants are obligated to meet the conditions of the lease for the full term or face penalties. RCW A lease expires at the end of the lease term unless the contract states otherwise.

Typically, a one year lease may contain language that converts the tenancy to month-to-month at the end of the stated lease term. This means that for a tenant whose lease does not have language automatically extending its term, neither party needs to give written notice, and the tenant must either move out or negotiate a new term.